According to the basic classical model, an increase in the money supply will cause
A)employment to increase.
B)the price level to increase.
C)output to increase.
D)investment to increase.

Question

Quizplus · Accepted Answer

In the classical model, an increase in the money supply is primarily seen as causing inflation, or an increase in the price level, without affecting real variables like employment, output, or investment in the long run.

According to the Basic Classical Model, an Increase in the Money